Stock Market & Financial Investment News

Eastman Kodak receives court approval of financing agreementIn a significant step toward its emergence from Chapter 11, Eastman Kodak Company received approval from U.S. Bankruptcy Court Judge Allan Gropper of the Southern District of New York for the company’s previously announced commitment from the Steering Committee of the Second Lien Noteholders Committee for interim and exit financing. This financing, which authorizes Kodak to borrow up to $844M, strengthens Kodak’s position to successfully execute its remaining reorganization objectives, finalize its Plan of Reorganization, and emerge from Chapter 11 in mid-2013. The previously announced financing includes new money term loans of $455M, as well as term loans of up to $375Missued to holders of senior secured notes participating in the new money term loans in a dollar-for-dollar exchange for amounts outstanding under the company’s pre-petition second lien notes. The financing is predicated on certain conditions, including the successful completion of the sale of Kodak’s digital imaging patent portfolio for no less than $500M. The Bankruptcy Court recently approved the sale of this portfolio for $527M, and the completion of this sale is expected in February.